One of the main shareholders of BBVA leaves due to hostile takeover by Sabadell

Banco Sabadell President Josep Oliu appears to have found an ally, as unexpected as it is indirect, to try to stop the hostile takeover launched in May by rival BBVA. The American fund GQG Partners, which once owned 3% of the capital of the Basque bank, sold its entire stake precisely because of this scandalous operation undertaken by the structure headed by Carlos Torres.

Although the decision was made in July last year, it has now become known after information was leaked to the British newspaper Financial Times. According to the same sources, the motivation of GQG Partners, a major investor in several European banks and which was one of BBVA’s five major shareholders, is that it believes the Sabadell proposal would take too much time and distract the company. from its goal, which will include addressing other strategic objectives, as well as reducing its impact on emerging markets.

According to the National Securities Market Commission (CNMV), the Florida-based fund owned 3,090% of BBVA shares in February 2021, with that stake falling slightly to 2,957% in August 2022, Europa Press reported. Despite the importance of its investment in the bank, GQG Partners has decided not to interfere in any way with the controversial takeover bid or provide guidance on its existing voting rights.

After the departure of the said American firm, BBVA’s main shareholders became another North American fund, the influential BlackRock with a 6.68% stake, as well as Capital Research and Management Company, one of the three largest pension fund managers in the world, with a 5.03% stake. .

BBVA, which came up with its proposal after previous contacts with Sabadell management failed, had already attempted to merge the two financial companies at the end of 2020, at the height of the pandemic. They also did not come to an agreement then due to discrepancies in the exchange equation and in the command structure of the resulting entity. Despite everything, the Basque bank insists that the operation still makes “strategic sense”, although its Catalan rival has categorically rejected it, believing that it itself could create more value for shareholders and that the price undervalued its project . .

Very open deadlines

Having received approval from the shareholders meeting and the European Central Bank (ECB), which analyzed the transaction solely from a solvency perspective, BBVA is now awaiting approval from the National Securities Market Commission (CNMV). But he is especially looking forward to the National Markets and Competition Commission’s (CNMC) statement on the project, aware of the position taken by the government in opposing the merger from the outset.

The calendar, managed by the organization headed by Carlos Torres, estimates that the Sabadell takeover bid process will take six to eight months from the announcement of the operation in May, including the time expected to obtain all necessary approvals. In fact, the bank estimates about five to six months for CNMC, that is, until the beginning of November.

Thus, in a prospectus filed with the US stock market regulator SEC, BBVA continues to maintain its forecast that the merger will close at the end of the first half of 2025. However, a few days ago, Economy Minister Carlos Corpo noted that the operational calendar could be extended “by a few more months, until the first quarter of 2025” if the competition analysis is extended and enters the so-called phase 2. Moreover, according to market sources “This could mean that it applies tighter conditions to the operation, which in turn would mean negative synergies” for the Basque bank.